Life insurance is one of the best safety nets that you can ever buy for your family. It’s one of the only ways that you can ensure that they have the money that they need, regardless of what happens to you. There are millions of senior applicants that assume that they no longer need life insurance coverage because of their age, but that could be one of the worst mistakes that they make.
Term life insurance for 80 year olds is a tough policy to get approved, unless the health of the individual is great, and there is sufficient reason to have the insurance.
A final expense life insurance policy, also called a final needs policy, isn’t too difficult, but it can be expensive. But finding a term policy is much more difficult, especially for a sizable death benefit amount. If you are looking for term life insurance for 80 year olds, we can help!
We know the companies you need to apply to, the different types to ask about, such as no medical exam, and we’ll help you along the way to make sure you get the coverage you need.
Term Life Insurance For 80 Year Olds
When someone is looking for life insurance over 80, there are basically four reasons someone is searching.
- Final Expenses
- Unpaid Debts
- Estate Planning
Final expenses are literally just funds which are used to pay for the last needs of a fallen family member, such as burial expenses, funeral expenses, and maybe some hospital bills which arise before passing. You leverage your premiums on a monthly basis to have access to a lump sum when it’s needed most.
Unpaid debts can come in many forms, and it’s not uncommon someone wishes to have the cleared when they die. It’s one thing to leave a legacy, it’s another to leave a bill to your heirs.
Legacy life insurance is the kind which is bought solely to leave as a gift or charitable donation. The insured agrees to forego giving their family now, in order to have the opportunity to pass on a greater amount of cash upon their death. When you die, the premiums you paid in should be only a portion of the proceeds paid out.
Estate planning is another piece of the puzzle, but term life insurance for 80 year olds is expensive, so the earlier you can take care of this, the more you’ll save. If an estate is large, it could be subject to estate taxes, and life insurance payouts are a great hedge against these.
What’s Available For 80 Year Olds?
There are three types of policies which are available for someone over 80. Each has a specific purpose, and prices vary widely.
Term Life Insurance For 80 Year Olds
Term life insurance for someone over 80 would be the least expensive, but not all companies offer it. There are also limits to how long of a duration you can purchase. Most of the time, if you need anything beyond just a few years, you’ll need to purchase a “Term to 90” or “Term to 95” type of policy.
Universal Life Insurance For 80 Year Olds
Universal life for an 80 year old is the most popular, because you can basically choose to what age you want the coverage to last, from 90 up to 121 years of age. This provides the flexibility for those family members who have excellent life spans, but also the guarantee of knowing the policy won’t expire before it pays.
Whole Life Insurance For 80 Year Olds
Whole life is by far the most expensive type of insurance for someone over 80, and it’s usually only offered in small amounts. This is a type of final expense life insurance policy, and is effective because it will not expire at any age. If a whole life policy doesn’t increase in face amount, you may be better of buying a universal life insurance policy to save on monthly premiums.
Underwriting Someone Over 80
For someone looking to get insurance over 80, there are three types of underwriting.
- Fully Underwritten
A guaranteed policy is one which, like the name implies, offers coverage no matter what. As long as you can afford premiums, the coverage is available to you. No medical questions or medicals are needed.
A simplified life insurance policy does have some medical questions, but if you can qualify for it, you’ll find it’s a little cheaper than guaranteed. This is also a great way to get a little more coverage than a guaranteed issue policy, should you need it.
A fully underwritten policy would be for someone who is in great health, and looking to get the most affordable life insurance policy. Someone in their 80’s will likely need a full medical, which includes a urinalysis, blood draw, EKG and other company specific requirements.
Advantages and Disadvantages of Guaranteed Issue Policies
When you’re looking to get life insurance coverage, it’s important that you understand all of the options to ensure that you’re getting the best insurance protection for your family. With a guaranteed issue plan, there are some unique benefits of these plans.
The most notable advantage is that you can be approved for coverage much faster than with a traditional policy. If you’re wanting to get a life insurance plan as quickly as possible, these plans are going to be the best option for you. With most companies you can be approved for life insurance in a matter of hours. With a traditional plan, it could take several weeks.
Another advantage is that anyone can buy one of these plans, regardless of age or health. It’s important that everyone can get the insurance coverage that their family needs, and these plans are a great way to do that.
There are some notable disadvantages to these plans that you should take note of when you’re looking to get insurance protection for your family. The biggest one is that these plans are much more expensive than other types of plans. While they are going to be more expensive, you can’t put a price on the peace of mind that having life insurance will bring you.
Another disadvantage to these plans is that you are going to be limited on how much insurance coverage that you can get. Because the insurance company is taking a much greater risk without the medical exam, they are only going to allow you to purchase a relatively small plan. With guaranteed issue plans, you will only be able to buy around $200,000 of life insurance.
Calculating Your Life Insurance Needs
Before you apply for any kind of plan, it’s important that you understand what your life insurance needs are. Not having enough life insurance could leave your family with massive leftover bills and no money to pay off those expenses. As an 80 year-old, your life insurance needs are very different than a typical applicant.
At this stage of life, you probably don’t have a lot of debt, but it’s important to give your loved ones the money that they need to pay off any final expenses once you pass away. Add up all of your funeral costs, car payments, and anything else that they would be responsible for. Make sure that your plan is large enough to pay off those bills to ensure that they aren’t left with thousands of dollars of debt.
The next number that you’ll need to look at is if anyone relies on you to pay for basic expenses. While your children probably don’t need your paycheck every month, if you have a spouse that would struggle after your passing, your life insurance can give them the money that they would need. Make sure that your loved ones won’t suffer financially because they no longer have your stream of income.
The last thing that you should consider is if you want to leave any type of legacy to your loved ones or to a charitable organization after your passing. A life insurance plan is an excellent way to leave behind a large sum of money without it being drained by Uncle Sam. There are thousands of people every year that decide to purchase a life insurance plan to help give back to the community.
If you, or someone you know, is looking to purchase term life insurance for an 80 year old, or even a universal or whole life policy, we can help you. Contact us for a free quote, and even apply right over the phone.
We know that finding the perfect life insurance plan can be a difficult search, especially as an 80 year-old, but it doesn’t have to be. Our agents have years of experience helping all kinds of clients get the perfect protection for their loved ones. Our agents are dedicated to ensuring that you find a quality and affordable life insurance plan. Don’t assume that you no longer need life insurance any longer because you’re retired. Not having life insurance could be one of the worst mistakes that you make for your loved ones. Don’t wait any longer to get the insurance protection that they need and deserve.